Tax-dodgers who hide money offshore ‘could face fines of up to three times the amount they evade’ under Philip Hammonds new proposals
Chancellor Philip Hammond‘s tougher stance is being described as a ‘game-changer’
TAX-DODGERS who get caught hiding money offshore could face fines of up to three times the amount they try to evade, under new proposals announced yesterday.
People who don’t come forward and pay outstanding taxes from offshore investments and accounts could also face criminal charges from October, in a move described as a “game-changer”.
It comes a week after HMRC announced proposals to punish accounting firms who help tax avoiders, as the new Chancellor Philip Hammond signals a fresh approach to tax dodgers.
Ex-Chancellor George Osborne was accused of shirking his duty in making sure tax was collected.
He came under criticism for accepting just £130million in back taxes from Google in January.
And there is widespread criticism that British tax laws are too lax, allowing large multinationals like Facebook, Google and Amazon to get around them.
In April the Public Accounts Committee called on HMRC “to increase the number of investigations and prosecutions, including wealthy tax evaders, and publicise this work to deter others from evading tax and to send out a message that those who try will not get away with it.”
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Yesterday HMRC announced it “will be even better able to target evaders from October 2016, when it starts to receive an unprecedented amount of data on those with offshore accounts in the Crown Dependencies and Overseas Territories.” It is hoping the new transparency initiative will help them find individuals hiding money offshore, in places like Jersey, Guernsey and the Cayman Islands.
Currently offshore penalties could be up to 200 per cent of the tax evaded.
A HMRC spokesman told The Sun that under the new proposals they expect to charge the higher end of the penalty range more often.
The Financial Secretary to the Treasury, Jane Ellison, said: “Every penny of tax that people evade deprives our public services of essential funding and we are focused on collecting all tax that is due.
“From October we will start to receive data on the offshore finances of UK taxpayers. This is a game-changer in the fight against evasion and it’s time for anyone who is evading tax to do the right thing and pay what they owe.” Since 2009, HMRC have secured just 13 offshore specific prosecutions.
Director General of Enforcement and Compliance for HMRC, Jennie Granger, said: “HMRC is getting tougher on tax evasion. It’s a crime which unfairly places a greater burden on the vast majority of people and businesses who pay the tax that they owe on time.
“We are determinedly tackling this. We will find those who think they can dodge paying tax in this country. We’ve closed old disclosure facilities, increased penalties, and ramped up our powers to tackle evaders and those that help others evade - the days of any safe havens for tax evaders are numbered.
“Our message is simple – come to us pay the tax and penalties that are due, before we target you with the introduction of even tougher sanctions and game-changing data.”